Tom has said he would be willing to drive across town in order to save $10 on
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Tom has said he would be willing to drive across town in order to save $10 on the purchase price of a $20 clock radio. If Tom is rational, this implies that he
a. Believes that the opportunity cost of the trip is not more than $10.
b. Should also drive across town to save $10 on a $500 television set.
c. Should not drive across town to save $10 on a $500 television set.
d. Should drive across town only if the savings on a $500 television set is at least $250.
e. More than one of the above are correct.
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Related Book For
Principles Of Economics
ISBN: 9781266052309
8th Edition
Authors: Robert H. Frank, Ben Bernanke, Kate Antonovics, Ori Heffetz
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